CIT v. Shriram Honda Power Equipment & Ors.

M/S LA OPALA RG LTD,KOLKATA vs. ACIT, CIR. 11(1), KOLKATA

In the result, the appeal of the assessee is allowed

Bench: Shri Sanjay Garg, Hon’Ble & Shri Manish Borad, Hon’Blei.T.A. No. 296/Kol/2022 Assessment Year: 2017-18 M/S. La Opala Rg Ltd. Assistant Commissioner Of Income Eco Centre Tax, Circle-11(1), Kolkata Vs 8Th Floor Em-4, Sector-5 Kolkata - 700091 [Pan : Aaacl5569J] अपीलाथ"/ (Appellant) "" यथ"/ (Respondent) Assessee By : Shri A.K. Tulsiyan, Fca Revenue By : Shri Biswanath Das, Cit D/R सुनवाई क" तारीख/Date Of Hearing : 08/09/2022 घोषणा क" तारीख/Date Of Pronouncement : 24/11/2022 आदेश/O R D E R Per Manish Borad: The Present Appeal Is Directed At The Instance Of The Assessee Against The Order Of Learned Principal Commissioner Of Income Tax, Kolkata -2 (Hereinafter The “Ld. Pr. Cit”) Dt. 29/03/2022, Passed U/S 263 Of The Income Tax Act, 1961 (“The Act’), For Assessment Year 2017-18. 2. Brief Facts Of The Case Is That The Assessee Is A Limited Company & Income Of Rs.52,63,83,260/- Declared In The E-Return Furnished On 31/10/2017 Pertaining To Assessment Year 2017-18. Assessment U/S 143(3) Of The Act Was Completed On 21/12/2019 Assessing Income At Rs.56,22,70,863/-. Thereafter, The Ld. Pr. Cit Called For The Assessment Record & After Going Through The Same It Was Observed That The Order Of The Assessment Was Erroneous Insofar As It Is Prejudicial To The Interest Of The Revenue On The Following Grounds:- “Upon Examination Of Case Records, It Is Observed That The Assessee Had An Income Of Rs. 49,08, 14,480/- From Sitaganj Exempted Unit In Which The Assessee Had Claimed Deduction U/S. 80Ic Of The Act Of Rs. 14,72,44,452/- (30% Of Rs.49,08, 14,480/-). It Was Observed From The Profit & Loss Accounts Of The Assessee For The Year Ended 31.03.2017 That The Assessee Had Credited An Amount Of Rs. 2,43,75, 193/- From Export Incentives & Also

…r purpose of computation of deduction under section 80IA interest income earned by assessee after deducting interest payments on borrowed tunas should be taken into account Held, yes [In favour of assessee]" (iii) CIT Vs. Shri Ram Honda Power Eguip. In (2007) 289 ITR 475 Hon'ble High Court of Delhi . "Whether where, as a result of computation of profits and gains of business and profession, Assessing Officer treats interest receipt as a business income, deduction under section 80HHC would be permissible in terms of Explanation (baa) to section 80HHC, of net interest, i.e. gross interest less expenditure incurred…

M/S LA OPALA RG LTD.,KOLKATA vs. DCIT, CIR.-11(1), KOLKATA

In the result, the appeal of assessee is allowed

Bench: Shri Sanjay Garg & Shri Girish Agrawal]

…urpose of computation of deduction under section 80-IA interest income earned by assessee after deducting interest payments on borrowed tunas should be taken into account - Held, yes [In favour of assessee]" (iii) CIT Vs. Shri Ram Honda Power Eguip. In (2007) 289 ITR 475 Hon'ble High Court of Delhi . " Whether where, as a result of computation of profits and gains of business and profession, Assessing Officer treats interest receipt as a business income, deduction under section 80HHC would be permissible in terms of Explanation (baa) to section 80HHC, of net interest, i.e. gross interest less expenditure incurred…

QUADRO INFO TECHNOLOGIES PVT. LTD.,KOLKATA vs. I.T.O.,WARD-1(4), KOLKATA

In the result, appeal of the assessee is treated as partly allowed

…islaus Co. v. CIT [2003] 263 ITR 10/ 130 Taxman 203 and in Urban Stanislaus Co. v. CIT [2003] 263 ITR 10/ 130 Taxman 244. Taxman 244. 5.5.3 The Delhi High Court has held in CIT v. Shri The Delhi High Court has held in CIT v. Shri Ram Honda Power Equip [2007] 289 ITR 475/ Ram Honda Power Equip [2007] 289 ITR 475/ 158 Taxman 474 that where surplus funds are parked with a bank and interest is earned thereon, it 158 Taxman 474 that where surplus funds are parked with a bank and interest is earned thereon, it 158 Taxman 474 that where surplus funds are parked with a bank and interest is earned thereon, it can only be…